Press all your cloth scraps, and cut the prints and muslin scraps into the size coaster tag you want plus one half inch (so to make a five inch square coaster tag, you'd cut your fabric into 5-1/2" squares.) Cut your batting or a stack of dryer sheets into the exact size of the coaster you want. Place a piece of masking tape across the center on the back of your muslin (like this), turn it over and write the name of your recipient on the front with your marker:

The masking tape is an old quilter's trick to temporarily stabilize the muslin so you can write on it like paper. Once you're finished writing, remove the tape, and stack a square of your print fabric on top of it so the name and the right side of the print are inside:

Place a square of muslin or a stacking of dryer sheets on top of your two squares and pin together:

Sew along the edge of the muslin square all the way around (like the black lines in this pic), leaving a 1-1/2" gap at the bottom. Clip your corners (like this), turn inside out, and press flat with your iron:

Sew closed the turning gap with a blind stitch, cut a heart shape to fit inside the coaster out of your notepaper, and pin the heart to the coaster:

The heart is your stitching guide. Stitch around it with your embroidery thread.

Thread your piece of narrow ribbon through the corner of your coaster:

Tie it to your gift with the ribbon:

Once they're done with their gift they can use the tag as a little coaster:

You can make these in all kinds of variations:

Some tips: Keep all your beading and raised embellishments on the outside edges of the tag so the center remains flat enough to place a cup on later. You don't have to write names on your tags, you can use an initial (like my K coaster above) or something else that identifies your recipient. One quilter I know makes fabric photo Christmas ornaments like this and uses them as gift tags first.